Hi everyone,
I recently bought an item at an auction held to support a political party. The item was overpriced, and I know the proceeds went to the party. My question is: Can this be considered a donation to a political party? Am I able to deduct the amount I paid, even though I received something in return?
Donation to a political party
Papa
In most cases, if you receive something in return for your payment—like an item at an auction—it may not be considered a full donation, even if the proceeds went to a political party. Generally, only the portion that exceeds the fair market value of the item could potentially qualify as a donation.
To deduct anything, you’ll need to check the specific rules where you file your taxes, as they can vary, and political donations often have strict limits. It’s best to get a detailed receipt from the party, showing the value of the item and the portion that could be considered a donation, and consult a tax advisor to be sure.
